Walcom Group Ltd Trading Update
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").
15 June 2020
WALCOM GROUP LIMITED
("Walcom" or "the Company")
The Board of Walcom provides an update on revenues for the year ended 31
December 2019, current trading and its working capital position.
The Company has announced previously that its operations during the 2019
financial year were adversely affected by the effects of African Swine
Influenza on customer orders in its key market of China. As a result, the
Board of the Company currently anticipates that revenues for the year ended 31
December 2019 will be approximately HK$15.1m (2018: HK$34.7m), though the
Company's results remain subject to audit.
The Company has seen a gradual recovery of the swine market in China, whereby
most of its customers have re-commenced ordering the Company's swine feed
products. Whilst the quantity per order is smaller than before, the Company has
observed a trend of more regular orders from customers. The Board is cautiously
optimistic that sales of swine products in China will continue and hopefully
accelerate during the fourth quarter of the current financial year.
Due to the combined effect of African Swine Influenza and COVID-19, Walcom has
experienced a significant reduction in sales of its products in markets outside
China which the Board expects will continue until the final quarter of the
current financial year.
The Company continues to develop its products for dairy cows in China, and the
Board anticipates that sales of these products will begin during Q4 2020.
Working Capital Position
Mr Francis Chi, Chief Executive of the Company, has still been unable to
provide the proposed loan of HK$1,230,000 (the "Director Loan") to the Company
as intended. Mr Chi has, again, reiterated his intention to provide the
Director Loan but there can be no certainty as to the provision or the timing
of the Director Loan.
Further to the announcement on 5 June 2020, the Company has extended its
payment plan with its bank in relation to a loan which was due for repayment at
the end of May 2020. Under the revised payment scheme, the Company is required
to repay RMB150,000 by 19 June 2020, with a further six monthly instalments of
RMB50,000 being payable commencing in July 2020.
The Company will require additional funding to satisfy the loan repayment due
on 19 June 2020. Therefore, based on Walcom's current cash flow projections,
the Company will be able to continue operations until 19 June 2020. In the
absence of the Director Loan now being received in part or in full by this
date, the Company would be unable to continue its operations and would be
forced into liquidation with a consequential diminution in value to
Further announcements will be made in due course.
Walcom Group Limited +852 2494 0133
Francis Chi (Chief Executive Officer/Chief Financial
Allenby Capital Limited (Nominated Adviser and Broker) +44 20 3328 5656
David Hart / Asha Chotai
(END) Dow Jones Newswires
June 15, 2020 02:37 ET (06:37 GMT)
Gráfica de Acción Histórica
De Jul 2020 a Ago 2020
Gráfica de Acción Histórica
De Ago 2019 a Ago 2020